Parliamentary Budget Committee wants taxes raised for government to meet Sh163 billion deficit

By Allan Kisia

NAIROBI, KENYA: The Parliamentary Budget and Appropriations Committee has expressed concerns that the Government might not be able to finance a deficit of Sh163 billion in the 2013-2014 Budget.

Committee chairman Mutava Musyimi and vice chair Mary Emaase warned that there is a very high likelihood that the Government might not be able to finance the entire Sh1.6 trillion Budget.

The two said the committee will look at all possible alternatives of how funds can be raised and then advise the Government accordingly.

“We have very little for county and national government. The question is, who will bear the burden of the deficit. Will it be the County or national government, or will they share the burden,” wondered Emaase.

.

Keep Reading business

•  NCPB sets in motion plans to compensate farmers for fake fertiliser
•  Governors reject revenue Bill, demand Sh439.5 billion allocation
•  Firm linked to fake fertiliser calls for arrest of Linturi, NCPB boss Premium
•  KPLC to pay Sh500 million for Nakumatt fire tragedy
•  Scented success: Passion for cologne birthed my venture Premium

She warned that borrowing from the domestic market can be a very expensive affair for Treasury.

Musyimi said the deficit has not been occasioned by the huge wage bill alone. “We need to stop corruption. Seal tax evasion loop holes and probably raise taxes to finance the deficit. It is not just the wage bill alone,” he explained.

The two spoke at a press briefing in Parliament Buildings after chairing their second meeting since the committee was constituted. They said members raised concern that the national debt is too high and that the Government is competing with the private sector for local funds.

“The debt is going up but we are yet to get the details of the figures. The wage bill is too high. We know that when the salaries and too high, the development expenditure is usually too small,” said Musyimi.

He said the Government must strengthen its capacity to collect taxes and seal all tax evasion loopholes.

He noted that beginning Thursday next week, the committee will visit 10 areas across the country to collect views from the public on the 2013-2014 Budget.

He names the places as Kakamega, Kisumu, Eldoret, Nairobi, Nakuru, Nyeri, Embu, Isiolo, Garissa and Mombasa.

“We would have wished to go to all counties but time is not on our side. We hope next year we will have an opportunity to visit more places,” added Musyimi.

He pointed out that the committee has divided itself into clusters, which will collect views separately.

“As you know we are the largest committee with 51 members. We have divided ourselves but we are yet to agree on who will go where,” he stated.

He noted that they will invite officials from Treasury for deliberations before they write the report, which will be tabled in Parliament.